Delivering Disciplined Growth Bank of America Merrill Lynch Canada Mining Conference September 10 th, 2009
Cautionary statement on forward-looking information All statements, other than statements of historical fact, contained or incorporated by reference in this presentation, including any information as to the future financial or operating performance of Kinross, constitute forward-looking information or forward-looking statements within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for safe harbour under the United States Private Securities Litigation Reform Act of 1995 and are, unless otherwise stated, based on expectations, estimates and projections as of the date of this presentation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Statements representing management s financial and other outlook have been prepared solely for purposes of expressing their current views regarding the Company s financial and other outlook and may not be appropriate for any other purpose. The forward-looking information set forth in this presentation is subject to various risks and other factors which could cause actually results to materially differ from those expressed or implied in the forward-looking information. The forward-looking information also reflects various estimates and assumptions of Kinross management. These risks, factors, estimates and assumptions are described in more detail inkinross most recently filed Annual Information Form in the section entitled Risk Factors, the Risk Analysis section of our most recently filed Management s Discussion and Analysis, the Risk Factors Related to the Offer section of our offer and take-over bid circular filed in respect of Aurelian Resources Inc. (the Aurelian Bid Circular ), the Risk Factors section of our final short-form prospectus dated and filed on January 29, 2009 and the Cautionary Statement on Forward-Looking Information in our news release dated February 18, 2009, to which readers are referred and which are incorporated by reference in this presentation. In addition, all forward-looking statements made in this presentation are qualified by the full Cautionary Statement on Forward-Looking Information in such news release. Kinross disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. Other information Where we say we, us, our, the Company, or Kinross in this presentation, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable. The technical information about the Company s material mineral properties contained in this presentation has been prepared under the supervision of Mr. Rob Henderson, an officer of the Company who is a qualified person within the meaning of National Instrument 43-101. 2
Why Kinross? 1. Growing margins, growing cash flow o Production rising, costs declining o Higher margins, CFPS (1) : 5 yr CAGR: 20% o Strong balance sheet 2. Pipeline of future opportunities o Large reserve and resource base o Growth in oz. per share: 5 yr CAGR: 14% o High-quality projects & new mine expansions 3. Compelling valuation Kinross today: Portfolio of 8 operating mines Policy of no gold-hedging Pure gold/silver producer 09e: 2.3 24mmozAu 2.4 (2) Low cost of sales 09e: $390 - $420/oz. (2,3) No base metal credits US$15.2 bn market cap o Future pipeline not reflected in share price o Projects will re-rate as they are advanced (1) Please refer to endnote #1. (2) Please refer to endnote #2. (3) Please refer to endnote #3. 3
Declining world supply from mine production 3000 2001: Peak Production 2500 2000 Other Big Four* Tonnes 1500 1000 500 0 1969 1974 1979 1984 1989 1994 1999 2004 * South Africa, United States, t Australia, Canada Source: GFMS Gold Survey 2009 4
Increasing demand for gold Total Gold Demand (US$ billions) $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Investment / Other Fabrication Gold price (US$/oz) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Gold Price (US$/o oz) Source: GFMS Gold Survey 2009 5
Major gold discoveries: 1997-2007 3 Yea ar Average of Grassroots + La ate Stage Spen nding (US$ MM) 3,000 2,500 2,000 1,500 1,000 500-1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 90 80 70 60 50 40 30 20 10 0 3 Year Average e of Major Au Discoveries (M MM oz.) # of Major Gold Discoveries 10 8 5 6 5 2 3 7 5 2 1 Total Au Ounces Discovered (3 yr. Avg) Gold Exploration Spending (3 yr. Avg) Source: Metals Economics Group and Company estimates 6
World gold reserves and resources Total Reserves & Resources (mm ozs) Country Top Countries (mm ozs) Total Reserves & Resources % United States Brazil Chile 1. South Africa 997 29.7% 2. Russia 225 6.7% Russia South Africa 3. Australia 193 5.8% 4. Indonesia 193 5.8% Mexico 5. U.S 177 5.3% Canada 6. Canada 135 4.0% 7. China 132 3.9% Ghana 8. Chile 109 3.3% Peru 9. Mexico 109 3.3% Australia 10. Ghana 87 2.6% 11. Brazil 80 24% 2.4% Other Countries China Indonesia 12. Peru 74 2.2% Other 842 27.2 Total: 3,353 Source: USGS January 2009 7
World gold reserves and resources Total Reserves & Resources (mm ozs) Country Top Countries (mm ozs) Total Reserves & Resources % United States Brazil Chile 1. South Africa 997 29.7% 2. Russia 225 6.7% Russia South Africa 3. Australia 193 5.8% 4. Indonesia 193 5.8% Mexico 5. U.S 177 5.3% Canada 6. Canada 135 4.0% 7. China 132 3.9% Ghana 8. Chile 109 3.3% Peru 9. Mexico 109 3.3% Australia 10. Ghana 87 2.6% 11. Brazil 80 24% 2.4% Other Countries China Indonesia 12. Peru 74 2.2% Other 842 27.2 Total: 3,353 Source: USGS January 2009 8
Relative global production growth by region Latin America Asia CIS Oceania Africa North America 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: GFMS World Gold Survey 2009 9
Growing margins growing cash flow 47% production growth: 2007 to 2009e Y-o-Y Costs declined 7% in Q2 09* Margins up 350% since 2002 CFPS growth 20% 5-yr CAGR** *Versus Q2 08 **Based on full year-end results 2003-2008 10
Focused portfolio of mines & projects in 5 countries Mines and projects: Chile Maricunga La Coipa Lobo-Marte Cerro Casale Brazil Paracatu Crixas USA Fort Knox Kettle River - Buckhorn Round Mountain Russia Kupol Ecuador Fruta del Norte 11
Production guidance for 2009: up 30% over 2008 Country Ounces (000s) Production % of 2009e total Cost of Sales / oz. Number of Mines Estimated Mine Life Chile 450 500 20% $425 460 2 16+ Brazil 480 550 22% $525 570 2 30+ Russia (4) 675 725 30% $265 290 1 8+ USA 625 680 28% $440 490 3 7+ Total Kinross (2) : 2.3 2.4 mm oz. $390 420 8 20+ (2) Please refer to endnote #2. (4) Please refer to endnote #4. 12
Growing production & declining costs Production (mm oz.) 2.3 2.4 Cost of Sales ($/oz.) (3) $421 1.6 1.8 $390 - $420 $368 2007 2008 2009e (2) (2) 2007 2008 2009e (2) Please refer to endnote #2. (3) Please refer to endnote #3. 13
Kinross margins expanding Average realized gold price is up 199% Kinross cost of sales margin (6) up 350% $436 $478 $481 Up 350% $329 $279 $107 $135 $161 $170 2002 2003 2004 2005 2006 2007 2008 Q1 2009 Q2 2009 (6) Please refer to endnote #6. 14
Margin performance (2002 Q2 2009) 5-year CAGR*: KGC: +350% Gold price: 19% NEM: +297% Kinross margin: 26% GG: +140% ABX: +116% FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 Q2 2009 *Based on full year-end results 2003-2008 15
Strong financial & operating results Record production & revenue in 2008 Q2 09 CFPS (5) : $0.33 (up 83% Y-o-Y) Growing reserves and resources (5) Please refer to endnote #5. 16
Q2 2009 results Realized Gold Price +1% $915/oz COS Margin (6) +10% (in millions, except ounces and per share amounts) $481/oz Q2 09 Q2 08 % change Gold equivalent production (oz.) 560,479 406,032 38% Gold equivalent sales (oz.) 583,607 330,633 77% Cost of Sales -7% $434/oz Revenue $598.1 $298.7 100% Cash Flow From Operations $227.1 $110.8 105% (before changes in working capital) (1,5) per share $0.33 $0.18 83% Adjusted net earnings (4) per share $84.3 $0.12 $49.5 $0.08 70% 51% (1) Please refer to endnote #1. (5) Please refer to endnote #5. (6) Please refer to endnote #6. 17
Growing cash flow per share Cash flow (before changes in working capital) (1,5) H1 09 vs. H1 08 (5) : Gold price -1% $1.01 Cash flow per share +88% $0.80 $0.41 $0.45 $0.51 $0.56 $0.34 $0.64 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 H1'08 H1'09 (1) Please refer to endnote #1. (5) Please refer to endnote #5. 18
M oz. Gold resource growth : 14% 5-yr CAGR 80.0 70.0 60.0 50.0 40.0 Inferred Resources (9) Measured & Indicated Resources (7) Proven and Probable Reserves Total ounces per 1,000 shares (10) (7,8) 2.9 30.00 45 4.5 6.1 8.2 2.4 20.0 6.2 24.7 10.0 19.4 14.1 21.2 7.0 19.1 11.1 3.9 8.0 46.6 45.6 27.9 140 120 100 80 60 40 20 Total resour rce ounce per 1,000 shares 0.0 2003 2004 2005 2006 2007 2008 0 (7) Please refer to endnote #7. (8) Please refer to endnote #8. (9) Please refer to endnote #9. (10) Please refer to endnote #10. 19
Balanced portfolio Reserves and resources are well diversified geographically Expected mine life 20+ years, all in core regions 2P Reserves (7,8) M&I Resources (7,8) Inferred Resources (7,8,9) USA 14% 45.6 mm oz. 19.1 mm oz. 21.3 mm oz. Russia 7% Chile 38% Brazil 32% USA 12% Chile 14% USA 3% Russia 6% Brazil 41% Chile 56% Brazil 13% Ecuador 64% (7) Please refer to endnote #7. (8) Please refer to endnote #8. (9) Please refer to endnote #9. 20
Pipeline of projects for the future Expansions being completed in 09 Further organic growth at our mines Advancing next suite of projects Exploration & JV strategies 21
Lobo-Marte, Chile Located in Chile, near current Kinross operations Development stage asset with large gold resources Infrastructure in place Opportunity to leverage Kinross experience and expertise to restart production La Coipa (2P: 1.06 g/t) Lobo-Marte (M&I: 1.72 g/t) Maricunga (2P: 0.72 g/t) Cerro Casale (2P: 0.61 g/t) ~110 km Resources (8) Tonnes Grade Ounces (000) (g/t) (mm) Indicated 97,680 1.72 5.4 Inferred 9,250 1.56 0.5 (8) Please refer to endnote #8. 22
Lobo-Marte, Chile Project parameters under consideration (11) ophase 1: Truck 2.4 g/t ore to La Coipa mill ophase 2: 40 50k tpd heap leach operation oinitial capital: approx. $450 500 mm oapprox. 350,000 ozs / yr osart plant to increase recoveries Recent milestones: oscoping study completed opre-feasibility initiated Next steps: ometallurgical test work ocomplete pre-feasibility study by year-end (11) Please refer to endnote #11. 23
Fruta del Norte, Ecuador Quito Project parameters under consideration (11) : o Underground mine o 3,000 tpd milling capacity Recent milestones: o Ecuador Mining Law approved (January 09) o Environmental Management Plan completed, submitted and approved Next steps: o Awaiting final approval to begin drill program o 12,000 metre drilling program o Pre-feasibility, upgrade resource category Inferred Resource (7,9) Tonnes Mineral Grade Ounces (000) (g/t) (000) 58,900 Gold 7.23 13,690 Silver 11.8 22,367 (7) Please refer to endnote #7. (9) Please refer to endnote #9. (11) Please refer to endnote #11. 24
Fruta del Norte / Condor 2009 spending: o Fruta del Norte: $25 mm FDN o Condor project exploration: $10 mm Exploration Plan: o Exploration of FDN basin and Condor trend to identify new FDN- type targets Pull-apart basin o Total 2009 planned drilling: 26,900 m 25
Cerro Casale, Chile Project parameters under consideration (11) : o Open-pit mine with 18 yr. mine life o 54 Mt/a ore processing plant and a 37 Mt/a heap leach o Avg. annual production (first full 10 yrs.)* 430k oz. of gold; 118 mm lbs of copper Recent milestones: o Pre-feasibility updated to mid-2008 costs o Estimated capital $3.6 bn (100%) o 50 / 50 JV agreement with Barrick Next steps: o Full-feasibility using current costing in Q3 09 Proven and Probable Reserves (Kinross 50% share) (7) Tonnes (000) 533,670 Mineral Grade In-Situ Gold 0.61 g/t 10.5 mm oz. Silver 1.7 g/t 29 mm oz. Copper 0.22% 2.6bnlbs La Coipa (2P: 1.06 g/t) Lobo-Marte (M&I: 1.72 g/t) Maricunga (2P: 0.72 g/t) Cerro Casale (2P: 0.61 g/t) ~110 km *On a 50% basis (7) Please refer to endnote #7. (11) Please refer to endnote #11. 26
Current mines: expansion projects Maricunga, Chile Expansion (11) La Coipa, Chile (11) o Scoping study completed late 2008 o Expanded throughput could increase annual production o Pre-feasibility expected at end of 2009 o Land package doubled in 2008 to 98,000 ha o Comprehensive district exploration under way Paracatu, Brazil - Expansion (11) o Potential to add third ball mill o Optimization opportunities once ramp-up complete (11) Please refer to endnote #11. 27
Project pipeline A. Near completion 2009 2010 2011 2012 2013+ Paracatu Expansion Fort Knox Expansion Production Production B. Expansions Maricunga Engineering Construction Production Paracatu Phase 3 Engineering Construction Production C. New Projects Lobo Marte Metallurgical Testing Engineering Construction Production Fruta del Norte Infill Drilling Engineering Construction Production Cerro Casale Engineering g Construction Production *based on current company estimates 28
Vl Valuation and performance Source: Bank of America Merrill Lynch research Precious Metals Weekly - September 7, 2009 29
P/NAV & P/CFPS 2.92 P/NAV 20.9 P/CFPS: 2010 2.72 2.50 2.49 2.26 13.5 13.4 11.5 10.5 AEM GG NEM KGC ABX GG AEM KGC ABX NEM 30
Adjusted market cap / reserve ounce $666 ce cap per re eserve oun (US$/oz) dj. market A $613 $390 $336 $297 GG AEM KGC ABX NEM 31
Adjusted market cap / production ounce $19,542 cap per oun nce of 2009e uction (US$ $/oz) $13,297 Adj. market prod $7,064 $4,573 $4,470470 AEM GG KGC ABX NEM 32
Kinross Key Objectives for 2009 Complete Aurelian integration Close Lobo-Marte acquisition from Teck Lock-in significant ifi share of input costs Strengthened liquidity: close $415 mm equity issue Replace Operations reserves Add tax-effective cash flow in Canada: Diavik Declare next dividend of $0.05 per share a 25% increase from previous dividend Paracatu expansion operating at 100% Advance Fruta del Norte project towards feasibility Advance Lobo-Marte project towards feasibility Complete feasibility / decision on Cerro Casale Complete Fort Knox expansion Assess bolt-on JVs / acquisitions 33
Why Kinross? 1. Growing margins, growing cash flows 2. Pipeline of future opportunities 3. Compelling valuation 34
Endnotes (1) Unless otherwise stated, all cash flow and cash flow per share figures in this presentation are before changes in working capital. Cash flow before changes in working capital is a non-gaap measure and is defined as cash flow provided from operating activities before changes in operating assets and liabilities. (2) For more information regarding Kinross production outlook for 2009, please refer to the press release dated August 19, 2009 available on our website at www.kinross.com. (3) Cost of sales per ounce is defined as cost of sales as per the financial statements divided by the number of gold equivalent ounces sold, both reduced for Kupol sales attributable to a third-party 25% shareholder. (4) Unless otherwise stated, production and cost of sales figures in this presentation are based on Kinross share of Kupol production (75%). (5) Adjusted net earnings and cash flow before changes in working capital numbers are non-gaap financial measures which are meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with GAAP. For more information about these non-gaap financial measures, and a reconciliation of these non-gaap financial measures for the three and six months ended June 30, 2009 and June 30, 2008, please refer to the press release dated August 12, 2009 available on our website at www.kinross.com under the heading Reconciliation of non-gaap financial measures. The Company did not prepare a reconciliation of these non-gaap financial measures for periods prior to the three and six months ended June 30, 2009 and readers should refer to the Company s financial statements and Management s Discussion and Analysis for the applicable periods for additional financial information prepared in accordance with GAAP. (6) Cost of sales margin is defined as the average realized gold price less attributable cost of sales per ounce. (7) Please refer to Kinross Mineral Reserve and Resource Statement at December 31, 2008, contained in our press released dated February 18, 2009, which is available on our website at www.kinross.com. For historical reserve and resource information, refer to Kinross public filings, available on our website. (8) The resource estimates for Lobo-Marte are historical resource estimates as reported by Teck Cominco Ltd. as at December 31, 2007 (see page 75 of Teck Cominco s 2007 Annual Report). Kinross mineral resource estimate in the 2008 year-end statement, as released February 18, 2009, does not include estimates for Lobo-Marte. (9) See note 12 to the Inferred Mineral Resource section of the press release dated February 18, 2009, available on our website at www.kinross.com. (10) Total ounce per 1,000 shares represent the sum of Proven and Probable Mineral Reserves, plus Measured and Indicated Mineral Resources plus Inferred Mineral Resources pro-forma as at December 31 of the given year, divided by the pro-forma shares outstanding for the same period. Proven and Probable Mineral Reserves, Measured and Indicated Mineral Resources and Inferred Mineral Resources are separate categories under NI 43-101. (11) For information regarding the status of the Company s new development projects and organic growth projects, please refer to the news release dated August 12, 2009 available on our website at www.kinross.com. 35
Appendix: 36
Paracatu, Brazil (100%) Expansion to triple throughput to 60 mtpa Expected to reach full capacity Q4 09 Mine life out to 2041 Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1 09 160,203 $683 2008 188,156 $450 Reserves and Resources (7) Tonnes Grade Ounces (x 1,000) (g/t) (x 1,000) 2P Reserves 1,429,229 0.40 18,162 M&I Resources 353,863 0.38 4,267 (7) Please refer to endnote #7. 37
Crixas, Brazil (50%) JV with AngloGold Ashanti Underground mine located in the Brazil Operating Results Operating Results Production Cost of Sales (Au eq. oz.) ($/oz.) H1 09 32,241 $425 2008 87,669 $302 Reserves and Resources (7) Tonnes (x 1,000) Grade (g/t) Ounces (x 1,000) 2P Reserves 2,817 4.00 362 M&I Resources 275 2.90 26 (7) Please refer to endnote #7. 38
Maricunga, Chile (100%) In the highly prospective Maricunga District Open pit, heap leach operation Pre-stripping of Pancho pit Expansion under review Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1 09 116,439 $529 2008 223,341341 $566 Reserves and Resources (7) Tonnes Grade Ounces (x 1,000) (g/t) (x 1,000) 2P Reserves 281,327 0.72 6,541 M&I Resources 116,032 0.61 2,290 (7) Please refer to endnote #7. 39
La Coipa, Chile (100%) Gold/silver mine in the Maricunga district Mill facility located 60km from Lobo-Marte deposits Comprehensive exploration program Operating Results* Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1 09 130,722 $392 2008 226,293 $489 Reserves and Resources (7) Tonnes (x 1,000) Grade (g/t) Ounces (x 1,000) 2P Reserves: Au Ag M&I Resources: Au Ag 17,742 1.06 59.9 22,422 1.14 29.0 604 34,144 825 20,297 (7) Please refer to endnote #7. 40
Kupol, Russia (75%) 3,000 tpd mill with open-pit and underground operation 2009 to be first full year of production Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1 09 368,541 $246 2008 469,907 $220 Reserves and Resources (7) Tonnes (x 1,000) Grade (g/t) Ounces (x 1,000) 2P Reserves: Au Ag M&I Resources: Au Ag 6,894 14.02 176.4 17 15.48 269.2 3,107 39,103 9 149 (7) Please refer to endnote #7. 41
Fort Knox, USA(100%) Located in Alaska Expansion and new heap leach to extend mine life and lower costs Material being stacked on new pads Operating Results Operating Results Production (Au eq. oz.) Cost of Sales ($/oz.) H1 09 116,017 $598 2008 329,105 $461 Reserves and Resources (7) Tonnes Grade Ounces (x 1,000) (g/t) (x 1,000) 2P Reserves 252,770 0.47 3,807 M&I Resources 97,526 0.55 1,723 (7) Please refer to endnote #7. 42
Round Mountain, USA (50%) Kinross-operated JV with Barrick Located in Nevada, USA Open pit mine Operating Results Operating Production Cost of Sales Results (Au eq. oz.) ($/oz.) H1 09 101,498 $526 2008 246,946 $465 Reserves and Resources (7) Tonnes Grade Ounces (x 1,000) (g/t) (x 1,000) 2P Reserves 83,989 0.60 1,621 M&I Resources 97,526 0.55 1,723 (7) Please refer to endnote #7. 43
Kettle River, USA (100%) Entered production in Q4 08 Small foot-print, underground mine 2009 first full year Near-mine exploration Operating Results Operating Results Production (Au eq. oz.) Cost of Sales ($/oz.) H1 09 61,706 $304 2008 27,036 $344 Reserves and Resources (7) Tonnes Grade Ounces (x 1,000) (g/t) (x 1,000) 2P Reserves 2,099 15.08 1,019 M&I Resources - - - (7) Please refer to endnote #6. 44